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Lockheed Martin’s revenue contracted in the third quarter as the aerospace and defense giant grappled with delayed contractual authorization and funding from the Pentagon for the F-35 Lightning II fighter aircraft. Though Lockheed managed earnings of per share of $6.80, beating Wall Street’s expectations, sales declined 1% year-over-year to $17.1 billion. Excerpts from my story for Aviation Week Network below: In an Oct. 22 earnings call, Lockheed CEO Jim Taiclet said the company delivered 48 F-35s in the September quarter and expects to deliver 90 to 110 overall this year. But delays in contractual authorization and funding for F-35 Lots 18 to 19 took a toll on Lockheed’s earnings. In a news release, the company said it could not “recognize revenue and profit on approximately $400 million of costs” incurred from July to September. Lockheed said it was also unable to invoice and receive cash of about $450 million through the third quarter. Those challenges aside, F-35 demand is strong. The world’s most advanced fighter jet “has become an essential component of the collective security of the U.S. and our global allies,” Taiclet said. The company predicts that by the 2030s, more than 600 F-35s will be in operation across more than 10 European countries. In July, Greece announced that it would acquire 20 F-35s, making it the 19th country to fly the aircraft. Looking ahead, Lockheed is likely to step up work on solid rocket motors, an area where it has continued to look for opportunity despite being blocked from acquiring Aerojet Rocketdyne by the Biden administration, which was concerned the deal would reduce competition in the defense sector. Lockheed dropped the bid in February 2022. L3Harris then announced plans to buy Aerojet for $4.7 billion in December 2022 and successfully completed the acquisition in July 2023. #lockheedmartin #f35 #aircraft #aerospace #defense #military #nationalsecurity https://lnkd.in/epSRquwZ

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